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- Samsung expands blockchain ambitions through major investment in Upbit parent company.
- Samsung affiliates target stablecoin payments and tokenized securities market expansion.
- Korean financial institutions accelerate crypto partnerships before new digital asset regulations.
Samsung has bolstered its presence in the digital asset industry by three of its affiliates agreeing to purchase a total of 4% of the shares in South Korea’s biggest digital asset exchange, Upbit, the company behind the nation’s largest cryptocurrency. The investment highlights Samsung’s growing emphasis on the blockchain infrastructure, tokenized finance, and digital payment areas.
Multiple local media reports indicate Samsung Securities, Samsung SDS and Samsung Card will purchase 1.39-million shares of Dunamu valued at approximately 613 billion Korean won ($408 million). Kakao was the previous owner of the stock, a South Korean technology company. Samsung Securities will become the largest shareholder with 2% of the shares in Dunamu. The new company will have 1% ownership stakes from both Samsung SDS and Samsung Card. Samsung joins the latest list of big companies entering the South Korea’s growing crypto market with the deal.
In addition, Samsung Securities will be cooperating with Dunamu in the tokenization of securities and distribution of digital assets. The partnership could provide Samsung with a more comprehensive approach to regulated financial services on a blockchain in the growing institutional interest in the region.Samsung’s participation would allow the company to provide a greater financial services for regulated operations of the blockchain, which has been gaining more traction in Asia. Also, Samsung SDS will integrate Dunamu’s blockchain know-how in its own AI and cloud businesses. The partnership also aims to enhance the security and data management capabilities of the business.
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Samsung Targets Stablecoin and Digital Payment Growth
Samsung Card is in the process of building a digital asset payment system via its financial platform Monimo.Samsung Card is developing a digital asset payment system, through its Monimo financial platform. The company seems to be laying the groundwork for the upcoming South Korea’s regulatory framework for stablecoins. At the moment, Dunamu is developing an Ethereum Layer-2 (L2) blockchain network named Giwa, which is still in the testing phase. Thus, Samsung’s investment might be utilized to support the advancement of the blockchain foundation besides providing support for cryptocurrency exchange businesses.
The investment is made just a month before Hana Bank’s announcement that it will acquire a 6.55 per cent stake in Dunamu for nearly 1 trillion Korean won. The deal was a sign of the maturing trust of institutions in the Korean digital asset industry. Not to mention, Dunamu has been rumored to be in talks for a merger with financial services arm, Naver Financial. The development will be expected to give a significant impact to Dunamu’s presence in the digital finance market in Korea.
Korean Institutions Accelerate Blockchain Partnerships
Over the past few months, a number of large financial institutions have ramped up blockchain collaborations. In a previous announcement back in November, Mirae Asset said it would buy a controlling stake in Korbit, a cryptocurrency exchange. Additionally, KB Kookmin Bank and Shinhan Bank are still conducting experiments on stablecoin and tokenized payments that are based on blockchain technology. Their projects reflect the overall institutional preparedness for providing regulated digital financial services.
The South Korean government is currently drafting the Digital Asset Basic Act, which will set regulations on stablecoins, tokenization of securities and other types of cryptocurrency activities. Consequently, Big Companies continue to prepare for the new legislation, and are keeping investments in blockchain development. Samsung’s investment in Dunamu is part of the company’s growing blockchain finance and digital asset services initiatives. As the regulatory landscape continues to become more clear, major Korean institutions have been ratcheting up partnerships with regard to cryptocurrencies.
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